Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.1
Segment Reporting
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting

9. Segment Reporting

The reportable segments were determined based on information reviewed by the chief operating decision maker for operational decision-making purposes and the segment information is prepared on the same basis that our chief operating decision maker reviews such financial information. The Company’s reporting segments are the retail segment, the wholesale segment and the GPMP segment. The Company defines segment earnings as operating income.

The retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. At its Company operated convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to independent dealers, sub-wholesalers and bulk and spot purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer, and shares the gross profit with the independent dealers.

The GPMP segment includes GPM Petroleum LP (“GPMP”) and primarily includes the sale and supply of fuel to GPM and its subsidiaries that sell fuel (both in the retail and wholesale segments) at GPMP’s cost of fuel (including taxes and transportation) plus a fixed margin (currently 5.0 cents per gallon) and the supply of fuel to a small number of independent dealers and bulk and spot purchasers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitive criteria as defined under ASC 280, Segment Reporting.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses and income taxes are not allocated to the segments, as well as minor other income items including intercompany operating leases.

With the exception of goodwill, assets and liabilities relevant to the reportable segments are not assigned to any particular segment, but rather, managed at the consolidated level. All reportable segment revenues were generated from sites within the U.S. and substantially all of the Company’s assets were within the U.S.

Inter-segment transactions primarily included the distribution of fuel by GPMP to GPM and its subsidiaries that sell fuel (both in the retail and wholesale segments). The effect of these inter-segment transactions was eliminated in the condensed consolidated financial statements.

 

 

 

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended March 31, 2022

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

854,667

 

 

$

727,697

 

 

$

1,162

 

 

$

—

 

 

$

1,583,526

 

Merchandise revenue

 

 

366,985

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

366,985

 

Other revenues, net

 

 

16,324

 

 

 

5,722

 

 

 

254

 

 

 

—

 

 

 

22,300

 

Total revenues from external customers

 

 

1,237,976

 

 

 

733,419

 

 

 

1,416

 

 

 

—

 

 

 

1,972,811

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

1,275,721

 

 

 

302

 

 

 

1,276,023

 

Total revenues from reportable segments

 

 

1,237,976

 

 

 

733,419

 

 

 

1,277,137

 

 

 

302

 

 

 

3,248,834

 

Operating income

 

 

45,679

 

 

 

7,413

 

 

 

20,607

 

 

 

302

 

 

 

74,001

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(2,445

)

 

 

—

 

 

 

(2,445

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

177

 

 

 

177

 

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

9

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

71,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

576,304

 

 

$

525,488

 

 

$

1,155

 

 

$

—

 

 

$

1,102,947

 

Merchandise revenue

 

 

359,281

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

359,281

 

Other revenues, net

 

 

16,977

 

 

 

4,939

 

 

 

255

 

 

 

—

 

 

 

22,171

 

Total revenues from external customers

 

 

952,562

 

 

 

530,427

 

 

 

1,410

 

 

 

—

 

 

 

1,484,399

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

819,467

 

 

 

317

 

 

 

819,784

 

Total revenues from reportable segments

 

 

952,562

 

 

 

530,427

 

 

 

820,877

 

 

 

317

 

 

 

2,304,183

 

Operating income

 

 

40,347

 

 

 

2,308

 

 

 

20,123

 

 

 

317

 

 

 

63,095

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(3,841

)

 

 

—

 

 

 

(3,841

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(56

)

 

 

(56

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

(6

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

59,192

 

 

A reconciliation of total revenues from reportable segments to total revenues on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

3,248,834

 

 

$

2,304,183

 

Other revenues, net

 

 

—

 

 

 

(43

)

Elimination of inter-segment revenues

 

 

(1,276,023

)

 

 

(819,784

)

Total revenues

 

$

1,972,811

 

 

$

1,484,356

 

 

A reconciliation of net income from reportable segments to net income (loss) on the condensed consolidated statements of operations was as follows:

 

 

 

For the Three Months
Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

71,742

 

 

$

59,192

 

Amounts not allocated to segments:

 

 

 

 

 

 

Other revenues, net

 

 

—

 

 

 

(43

)

Store operating expenses

 

 

584

 

 

 

577

 

General and administrative expenses

 

 

(31,079

)

 

 

(26,002

)

Depreciation and amortization

 

 

(22,794

)

 

 

(22,399

)

Other expenses, net

 

 

(1,121

)

 

 

(1,672

)

Interest and other financial expenses, net

 

 

(13,832

)

 

 

(25,093

)

Income tax (expense) benefit

 

 

(1,182

)

 

 

778

 

Net income (loss)

 

$

2,318

 

 

$

(14,662

)